Appetite For Self-Destruction Part 9

"I said, 'Here's the deal'": Author interview with Burger.

"They blew it": Author interview with Finer.

Alb.u.ms on the Hill description: Author interview with Andy Schneidkraut.

"It was like a knife in my back": Ibid.

"It was clear that the computer companies": Author interview with Steve Gottlieb.

Chapter 3 19982001: The Teen Pop Bubble: Boy Bands and Britney Make the Business Bigger Than Ever-But Not for Long "It was maniacal" maniacal": Author interview with Erik Bradley.

"We were like, 'All right, they seem to have a track record'": Author interview with Tom Calderone.

"People keep asking me, 'What are you going to do'": From Leeds, Jeff, "That Awkward Phase: Britney and Pals Are Maturing. Sales Are Slowing. But Kid Pop Feeds a Media Establishment That Won't Give Up on the Genre Easily," Los Angeles Times, Los Angeles Times, December 2, 2001, p. F8. December 2, 2001, p. F8.

"You have the huge infrastructure of people": Author interview with Lyor Cohen, 2005.

"As busy as [Calder] was": Author interview with Gary Stiffelman.

"Clive was more no-frills": Author interview with David McPherson.

Early Clive Calder biography and "There are many cities in South Africa": From Scott, Ajax, "Clive Calder: Zomba's $500m Mystery Man Thinks Big," Music Business International, Music Business International, August 1996, page number unknown. August 1996, page number unknown.

"Fanatically self-disciplined" and tax manuals: From Malan, Rian, "The $3 Billion Man: Say Goodbye (for Now) to Clive Calder, the Mystery Mogul Who Sold His Baby, Jive Records, and Set the World's-Record Pop-Music Payday," Rolling Stone, Rolling Stone, July 25, 2002, pp. 2628. July 25, 2002, pp. 2628.

Calder, EMI, and Malawi: From Malan, Rolling Stone Rolling Stone, July 25, 2002, pp. 2628.

Theory on Calder's "ears": Author interview with David McPherson.

"South Africa was segregated": Author interview with Jonathan Butler.

"We were politically very much opposed": Author interview with Ralph Simon.

"slightly off the pace": From Malan, Rolling Stone, Rolling Stone, July 25, 2002, pp. 2628. July 25, 2002, pp. 2628.

Henri Belolo...Village People: From Scott, Music Business International, Music Business International, August 1996, page number unknown, confirmed by Ralph Simon. Calder and Simon agreed they had to keep as much control of Zomba as possible: Author interview with Simon. August 1996, page number unknown, confirmed by Ralph Simon. Calder and Simon agreed they had to keep as much control of Zomba as possible: Author interview with Simon.

Clive Davis role: Author interview with Simon. $225 million and fifty companies: From Malan, Rolling Stone, Rolling Stone, July 25, 2002, pp. 2628. July 25, 2002, pp. 2628.

"The Jive offices were crummy, cardboard desks": Author interview with Gary Stiffelman.

"very bad" falling-out and "For a variety of reasons": Author interview with Ralph Simon.

"has a ruthlessness that knows no boundaries": From Kafka, Peter, and Brett Pulley, "Jive Talking," Forbes Forbes, March 19, 2001, p. 138.

Barry Weiss and Hy Weiss: Author interview with Barry Weiss, Jive Records company biographies. $50 handshake: From Sisario, Ben, "Hy Weiss, 84, Music Executive from Rock 'n' Roll's Early Days, Dies," New York Times, New York Times, March 31, 2007, p. A16. March 31, 2007, p. A16.

"Do you know any rappers?" and Weiss-Calder relationship: Author interview with Barry Weiss.

Early Whodini background and "We had rooms next to each other": Author interview with Barry Weiss.

"I never had been on a plane in my life life": Author interview with Jalil Hutchins.

Lou Pearlman biography and quotes: From Pearlman, Lou, with Wes Smith, Bands, Brands, & Billions: My Top 10 Rules for Making Any Business Go Platinum Bands, Brands, & Billions: My Top 10 Rules for Making Any Business Go Platinum (New York: McGraw-Hill, 2003), pp. 317, 9799. (New York: McGraw-Hill, 2003), pp. 317, 9799.

$250,000 in savings detail: From Lipner, Maxine, "More Than Hot Air," Nation's Business Nation's Business, March 1993, p. 16 "You could tell the alternative age was over": Author interview with Paris D'Jon.

Backstreet Boys auditions: From Pearlman, Bands, Brands, & Billions Bands, Brands, & Billions, pp. 115125.

"We were living in Orlando in a nondescript office park" and other Jay Marose quotes: Author interview with Marose.

Donna Wright's voicemail and biography of David McPherson, "He was like, 'You know what?'" and other McPherson quotes: Author interview with McPherson.

Mercury bought out the Backstreet Boys' contract: Author interview with Barry Weiss.

Stuart Watson's Asia publicity plan: Author interview with Watson.

Girls screamed: Author interview with Barry Weiss.

"They brought them to Chicago": Author interview with Erik Bradley.

"Unlike rock bands, these bands were perfect": Author interview with Bill Scull.

"We were looking for a Debbie Gibson": Author interview with Steve Lunt.

"When Clive heard that in the A&R meeting": Ibid.

"We at Jive said, 'This is a f.u.c.kin' smash'": Ibid.

"We go out in the parking lot": Author interview with Michael Steele.

his public company, International Ltd.: From Boucher, Geoff, "The Making of Heartthrobs Inc.: First Came the Backstreet Boys, Then 'NSync, and Now a Fleet of More Contenders for Pop Idolization," Los Angeles Times Los Angeles Times, January 24, 1999, p. 4.

$12 million mansion, neighbor Shaquille O'Neal, and Rolls-Royce: From Palmeri, Christopher, "From Starmaker to Scammer? Boy Band Svengali Lou Pearlman Is Accused of Running a Ponzi Scheme," Business Week Business Week, March 19, 2007, p. 46. Jet skis, Windemere mansion, Republican donations, Orlando Predators, and Rolex: From Huntley, Helen, "Unmasking Lou Pearlman: The Promoter Who Loved the Limelight Has Retreated to the Shadows. Left in the Dark Are the Investors," St. Petersburg Times St. Petersburg Times, June 3, 2007, p. 1D.

"He was arrogant and thought he was the smartest guy in the room": Author interview with Bob Jamieson.

"You can't make money on an airline": From Boucher, Geoff, Los Angeles Times Los Angeles Times, January 24, 1999, p. 4.

'NSync audition: From Pearlman, Bands, Brands, & Billions Bands, Brands, & Billions, pp. 233237 (Pearlman's version), and Lynn Harless affidavit, Trans Continental Records Inc. et al. vs. Zomba Recording Corp. et. al, Trans Continental Records Inc. et al. vs. Zomba Recording Corp. et. al, November 2, 1999 (Harless's version). November 2, 1999 (Harless's version).

"We brought in another brother and they saw it as an abandonment": From Boucher, Los Angeles Times, Los Angeles Times, January 24, 1999, p. 4. January 24, 1999, p. 4.

Backstreet Boys lawsuit, meeting, Johnny Wright quote, "name-calling," "indentured servants," and "It would be nice to have them as my five sons": From Reilly, Patrick M., "The Impresario Behind Boot Camp for Pop-Music Idols," Wall Street Journal Wall Street Journal, January 22, 1999, p. B1.

"Here were some guys that sold twenty-plus million alb.u.ms": Author interview with Peter Katsis.

Backstreet Boys tour numbers: From Evans, Rob, "Backstreet Boys Cash In on Unorthodox Ticket Sales Plan," LiveDaily.com, August 19, 1999.

JC Chasez's realization and $10,000 advance: From JC Chasez affidavit, Trans Continental vs. Zomba, Trans Continental vs. Zomba, November 2, 1999. November 2, 1999.

Ritholz on Trans Continental numbers: From Adam Ritholz affidavit, Trans Continental vs. Zomba, Trans Continental vs. Zomba, November 2, 1999. 'NSync's meeting with Pearlman: Author interview with Ritholz. November 2, 1999. 'NSync's meeting with Pearlman: Author interview with Ritholz.

"He said to me, 'I have a certain principled way of doing things'" and other Ritholz quotes, as well as detail about "inducement letter" and Ariola contract: Author interview with Adam Ritholz.

Early Strauss ZelnickClive Calder friendship: Author interview with Zelnick.

Adam RitholzClive Calder phone conversation: Author interview with Ritholz.

Strauss Zelnick background, including "Mr. Know-It-All" and Tyrese and Pink anecdotes: From Roberts, Johnnie L., "BMG: Behind the Music," Newsweek, Newsweek, May 15, 2000, p. 46. "I had virtually no record business experience": Author interview with Zelnick. May 15, 2000, p. 46. "I had virtually no record business experience": Author interview with Zelnick.

Barbecue sauce: From Landman, Beth, and Mitch.e.l.l, Deborah, "Intelligencer," New York New York, July 20, 1998.

BMG sales increased 7 percent, to $4.6 billion: From Pulley, Brett, "Ballad of the BMG Blues," Forbes Forbes, December 27, 1999, p. 56.

Strauss ZelnickClive Davis background, and Barry Manilow quote: From Pulley, Brett, Forbes Forbes, December 27, 1999, p. 56.

"As Bertelsmann's board knew well" and Davis's not grooming a successor: Confidential source.

"Lou is a bad guy. He treated the guys badly. But BMG had a deal with him": Confidential source.

"Justin and I were texting each other about our suits": Author interview with Jay Marose.

"That was the most stressful time of my career": Author interview with Bob Jamieson.

Clive Calder's "put option": From Benoit, Bertrand, "Media Chief Keen on Zomba," Financial Times, Financial Times, December 17, 2001, p. 19. December 17, 2001, p. 19.

Details of Calder's plan: Confidential source.

AOL-Bertelsmann deal: From Waters, Richard, "The Price of Britney: The Sale of Zomba to Bertelsmann Raises Doubts About the Financial Health of the Industry," Financial Times, Financial Times, June 13, 2002, p. 21. June 13, 2002, p. 21.

Blackwell, Geffen, and Branson sale prices: From Malan, Rolling Stone, Rolling Stone, July 25, 2002, pp. 2628. July 25, 2002, pp. 2628.

"The most impressive man ever in the music business": Author interview with Peter Katsis.

Ralph Simon used the word ruthless ruthless in the context of Clive Calder in in the context of Clive Calder in Forbes Forbes; Malan used it in Rolling Stone Rolling Stone, July 25, 2002, pp. 2628; Scott used it in Music Business International, Music Business International, August 1996, page number unknown; and a confidential source used it in an author interview. August 1996, page number unknown; and a confidential source used it in an author interview.

"Anyone who knew him": Author interview with Steve Lunt.

"He was never hands-on": Author interview with Raul Molina (and the other two members of C Note).

"Watch, at the end of the next song": From Boucher, Los Angeles Times Los Angeles Times, January 24, 1999, p. 4.

Puerto Rican parade details: Author interview with Raul Molina.

"He's one of these salesmen": Ibid.

Employee Investment Savings Accounts and Steven Sarin detail: From Palmeri, Business Week Business Week, March 19, 2007, p. 46.

Joseph Chow background, $14 million payment, and "He was certainly very friendly": Author interview with Jennifer Chow.

"He told us he had 412 airplanes" and other details from David Mathis: From Huntley, Helen, St. Petersburg Times St. Petersburg Times, June 3, 2007, p. 1D.

Steven Sarin's family and Mathis's $2.8 million, Ibid., p. 1D. Chow's death and family: Author interview with Jennifer Chow.

He pleaded guilty: From "Boy Band Mogul Lou Pearlman Admits Role in Ponzi Scheme," a.s.sociated Press, March 5, 2008. Pearlman sentencing details and "I'm truly sorry, your honor": From Leusner, Jim, and Willoughby Mariano, "Boy-Band Mogul Lou Pearlman Sentenced to 25 Years in Federal Prison," Orlando Sentinel, Orlando Sentinel, May 21, 2008. May 21, 2008. Vanity Fair Vanity Fair revelations and Alan Gross quotes: From Burrough, Bryan, "Mad About the Boys," revelations and Alan Gross quotes: From Burrough, Bryan, "Mad About the Boys," Vanity Fair Vanity Fair, November 2007, pp. 252268.

"Karma's a b.i.t.c.h": From Soll, Lindsay, "Monitor," Entertainment Weekly Entertainment Weekly, June 29, 2007, p. 28. Members of the Backstreet Boys and 'NSync refused interview requests.

Zelnick-Middelhoff friendship: Author interview with Thomas Middelhoff. Zelnick felt blindsided and "How could the music group not know about this?": From Menn, Joseph, All the Rave: The Rise and Fall of Shawn Fanning's Napster All the Rave: The Rise and Fall of Shawn Fanning's Napster (New York: Crown Business, 2003), pp. 263265. (New York: Crown Business, 2003), pp. 263265.

Big Music's Big Mistakes, Part 4: Killing the Single Terry McMa.n.u.s biography: Author interview with McMa.n.u.s. "Here is where the North American music industry made its greatest mistake": From McMa.n.u.s, Terry, "Singles Are Key to the Record-Buying Habit," Billboard Billboard, December 27, 1997January 3, 1998, p. 10.

"If you think about water": Author interview with McMa.n.u.s.

"Very simple" and "The industry was looking for excuses": Author interview with Jim Caparro.

"They tried everything": Author interview with Stan Goman.

"It's no coincidence": Author interview with Steve Gottlieb.

"If you only sold hand lotion in five-gallon bottles": Author interview with Albhy Galuten.

Big Music's Big Mistakes, Part 5: Pumping Up the Big Boxes Hegewisch Records description and Beatles Anthology Anthology prices: From author observation and Knopper, Steve, "Small Stores Use Strategy to Survive," prices: From author observation and Knopper, Steve, "Small Stores Use Strategy to Survive," Post-Tribune Post-Tribune, Gary, Indiana, March 31, 1996, p. E4. More on compet.i.tion from Best Buy: From Knopper, Steve, "Slash and Burn: When Record Stores Go to War, It's Survival of the Biggest," SPIN, SPIN, September 2000, p. 72. September 2000, p. 72.

Best Buy started selling CDs...in 1986: Author interview with Gary Arnold. Best Buy carrying 40,000 to 60,000 t.i.tles: From Schmeltzer, John, "A New Tune: Price Cuts, Listening Posts Change Pitch of Music Retailing," Chicago Tribune Chicago Tribune, August 14, 1994, p. 1.

"The reality is all of our businesses": Author interview with Gary Arnold.

The chain demanded $40,000 to $50,000: Author interviews with Stan Goman and Robb Nansel, president of Saddle Creek Records. "Frigging Best Buy!": Author interview with Goman.

Newbury Comics prices: From Peers, Martin, and Evan Ramstad, "Prices of CDs Likely to Drop, Thanks to FTC," Wall Street Journal, Wall Street Journal, May 11, 2000, p. B1. May 11, 2000, p. B1.

"The MAP thing was great": Author interview with Terry Currier.

"n.o.body ever explained that to us": Author interview with Gary Arnold.

FTC overpayment estimate of $480 billion: From Morris, Chris, "Consumers Sue Majors Over MAP Policies," Billboard, Billboard, May 27, 2000, p. 7. May 27, 2000, p. 7.

Label settlements, library donations, and "It's better than a poke in the eye": From Knopper, Steve, "Unwanted Music," Rolling Stone Rolling Stone, August 5, 2004, p. 28.

More than 65 percent of all the CDs: From Smith, Ethan, "Can Music Survive Inside the Big Box?: Wal-Mart, Target, Best Buy Tighten Their Grip on CDs as Sales, Choices, Decrease," Wall Street Journal Wall Street Journal, April 27, 2007, p. B1. Confirmed in author interview with Jim Caparro.

Chapter 4 19982001: A Nineteen-Year-Old Takes Down the Industry-with the Help of Tiny Music, and a Few Questionable Big Music Decisions "There's no one in the record industry that's a technologist": From Mnookin, Seth, "Universal's CEO Once Called iPod Users Thieves. Now He's Giving Songs Away," Wired Wired, December 2007, pp. 202. Morris did not respond to numerous interview requests, although he granted one to the author for Rolling Stone Rolling Stone in 2005, cited later in the book. in 2005, cited later in the book.

"There were only like forty people trying to get Doug's attention": Author interview with Erin Yasgar. Background on Albhy Galuten and Courtney Holt from author interviews with Galuten and Holt.

Cornyn's small staff included Ted Cohen, who went on to be an important high-tech executive at EMI in the 2000s, and Steve Greenberg, later president of Columbia Records.